Condo vs. Free Standing Property For Your Airbnb - Pros and Cons

As people consider which property to get for their short-term rental, they’ll inevitably come across two types - a condo or a free-standing house (e.g. single family). In this article, I want to talk about the positives and negatives of each type, as well as explain why we never go for condos ourselves.

Condo:

Pros:

• Low maintenance - there’s a management company already in place, so if something breaks, you always have someone to call.

• Good locations - it’s easier to find a condo in or close to downtown areas vs. a single family house which tend to be a little further away. Although not always.
  

Cons:

• Extra cost - the condo fee can be quite high and take a significant chunk out of your cashflow

• Tend to be smaller - we typically prefer larger properties, whereas condos typically tend to be smaller (1, 2 or 3 bedrooms). Although not always.

• More susceptible to complaints from neighbors - you tend to be closer to your neighbors and, oftentimes, they do not like if there are short-term guests coming and going so close to them.

• More restrictions - as there is a homeowners’ association overseeing the entire property, you typically will find more restrictions imposed on you.
  

Free-Standing Property:

Pros:

• More control - you have more control over your space and do not have to answer to an HOA

• No HOA expense - this can improve your financial bottom line.
  

Cons:

• More maintenance - when something breaks, it’s on you as the property owner to find a solution. It can be a bit stressful for new homeowners.
  

• More susceptible to complaints from neighbors - you tend to be closer to your neighbors and, oftentimes, they do not like if there are short-term guests coming and going so close to them.
  

What’s Our Take?

Personally, we strongly prefer free-standing properties for several key reasons:

1. We do not want to put ourselves in a situation where the HOA decides that it doesn’t want short-term rentals.

2. Over time, we’ve begun to focus more on larger properties and those that need more work which brings us to free-standing multi-families as the preferred type.

Can you be successful with a condo as a short-term rental? Absolutely - plenty of people do it and see fantastic returns. However, it’s worth thinking through the pros and cons before you determine which one is right for you.

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If you have any questions, feel free to email us at [email protected]. We would love to hear from you!